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LATEST NEWS UPDATES | Nod for cash payment for COVID bills of over ₹2 lakh

Nod for cash payment for COVID bills of over ₹2 lakh

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published Published on May 7, 2021   modified Modified on May 8, 2021

-The Hindu

The relaxation has been granted for payments received in cash between April 1 and May 31, provided such healthcare providers obtain the PAN or Aadhaar of the patient and the payee.

The government has notified changes to the Income Tax Act to allow cash payments of over 2 lakh for COVID-19 patients’ treatment at hospitals, dispensaries, nursing homes, COVID care centres or other similar medical facilities.

The relaxation has been granted for payments received in cash between April 1 and May 31, provided such healthcare providers obtain the PAN or Aadhaar of the patient and the payee. The hospitals or nursing homes will also be required to establish the relationship between the patient and the payee to allow such payments.

The provision to bar cash payments over 2 lakh was introduced in 2017 as an attempt to curb black money flows, following the demonetisation exercise that began in November 2016. A 100% penalty is levied on any person who has received such a sum in cash. Several COVID-19 affected families, who had no access to digital banking facilities, had been struggling to pay their hospital bills due to the rule.

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The Hindu, 7 May, 2021, https://www.thehindu.com/news/national/nod-for-cash-payment-for-covid-bills-of-over-2-lakh/article34510226.ece?homepage=true


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